What you should do about the US bond yield spike
Suddenly everyoneโs talking about US bond yields surging. I see that the 10-year US government security is up by some 0.02 % to 1.57%. Why is this such a big deal?
While yesterdayโs move isnโt big, whatโs big is the US 10-year Treasuryโs 43 basis point rise in the last one month. This means that, a month ago, investors in long term bonds issued by the US government were getting 1.13% by way of interest and now theyโre getting 1.57%. Thatโs a 40% jump in returns from an asset that is regarded as one of the safest parking grounds for money in the world.
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